Med Spas
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 8,800 medical spas offer cosmetic medical procedures and traditional spa services under the supervision of licensed healthcare professionals. Operators provide a variety of aesthetic, minimally invasive, and non-invasive procedures that enhance physical appearance. Popular treatments include dermal fillers, neuromodulators/Botox, laser treatments, microdermabrasion, and chemical peels. Medical spas employ trained staff, such as registered nurses (RN), nurse practitioners (NP), physician assistants (PA), and aestheticians, to administer procedures.
Medical Complications
Medical procedures naturally come with some risk of complications, and those performed by nonphysician personnel in medical spas have elevated risks.
Government Regulation
Because medical spas are technically medical practices, operators are subject to regulatory oversight by state medical boards, which determine what constitutes a medical procedure, who can perform the procedure, the staffing ratio of physicians to non-physicians, and what qualifies as on-site/off-site supervision.
Industry size & Structure
Industry Forecast
Med Spas Industry Growth
Recent Developments
May 17, 2024 - Consumer Spending, Wages Up
- Med spas may see a boost due to higher consumer spending levels in March 2024, up 3.1% compared to a year ago and 0.5% from the previous month, according to the Bureau of Economic Analysis. Data from the Bureau of Labor Statistics (BLS) showed a 1.5% rise in employment growth by other personal care services, including med spas, in March 2024 compared to a year ago. Wages at other personal care services, including med spas, were up 6.9% to $25.39 per hour in March 2024 compared to a year ago, per the BLS.
- More spas and salons are incorporating “Buy Now Pay Later” (BNPL) payment options to give customers additional flexibility to pay for high-priced services such as advanced skin care, spa packages, and med spa treatments, according to Modern Salon. The BNPL option allows customers to pay for purchases in installment-based payments over a fixed period interest free. The option lets spas consider expanding their current prices or adding higher-priced premium services, knowing that clients have payment flexibility. Younger shoppers are also comfortable using the BNPL plans. According to a new report from PYMNTS Intelligence and Splitit titled “Redefining Retail: Consumer Finance Trends Driving the Evolution of Pay Later Plans,” 65% of Gen Z and millennials used pay later plans in the past year.
- A new report from the International SPA Association (ISPA) shows growth in all spa industry benchmark data in 2023 as the industry continues to improve post pandemic, according to Salon Today. Overall revenue reached a record $21.3 billion in 2023, up 5.7%, and average revenue per visit reached $117.2, up 5.1%. Other key data points included a 2.6% gain in spa industry employment, a 0.2% increase in spa locations, and a 0.6% rise in sessions. According to ISPA President Lynne McNeese, “Revenue drives growth for spas. Increasing overall revenue and dollars spent per visit allows spas to hire more employees and open new locations. This year’s good news will make it possible for the spa community to reinvest in growth.” The ISPA commissioned PricewaterhouseCoopers (PwC) to conduct the annual ISPA US Spa Industry Study.
- The global medical spa industry market size is expected to grow significantly, with a projected size of $59.4 billion by 2033, according to a new report by Market.us in ForexTV.com. The growth will be driven by the increasing demand for non-invasive cosmetic procedures. The market was estimated to be $17.2 billion in 2023 and is expected to grow at a CAGR of 13.2% from 2024 to 2023. North America holds the largest share of the medical spa industry, accounting for 44.7% of the market. The most popular services in the medical spa market are facial treatments, body shaping and contouring, hair removal, scar revision, and tattoo removal.
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